What Are Grants

A Grant is a sum of money that an organization gives to a business to help in its growth.  Unlike a loan there is no requirement to repay a grant.  You do not have to give up equity  in your business to get a grant.  It is not debt or equity financing. 

Certain grants do exist for very specific groups, organizations, or activities – such as businesses involved in scientific research and development.

How Can You Use Grants

Grants can be used for the purpose specified by the granting organization.  Some organization stipulate that the grant has to be used for specific things, while other organizations allow the recipients to decide how they want to spend the money.

Usually grants can be used to hiring new employees, buying machinery, as operating cost, etc.

Advantages of Seeking Grant Money

The advantage to seeking grant money is that there is no upfront cost to get it and you do not have to pay it back.

In some cases the requirement is a simple business plan and in other cases you just have to state how you will use the money.

Disadvantages of Seeking Grant Money

The only down side to seeking grant money is if you become dependent year after year on it to grow your business.  There is no guarantee that if you get it this year, you may also get it in the following years.

Finding Grants

Despite what the late-night infomercials want you to believe, the federal government does not provide grants for business expansion and growth.

There are thousands of grant sources.  However, most of those grants goes to individuals, states and non-profit organizations that are engaged in specific activity.  Only a small number of grants are aimed towards small businesses.  See below for a list of small business grants.

Before you can obtain government grants there are several one-time actions you must complete in order to be able to submit an application through Grants.gov (e.g., obtain a Dun and Bradstreet Data Universal Numbering System (DUNS) number, register with the Central Contract Registry (CCR).

Also see:  Guide to submitting for Grants on Grants.gov

Use the list below to find small business grants

Organization

Description

 Type
Boston Women's Fund The Boston Women’s Fund and the Boston Women’s Foundation supports start-up and on-going women’s and girls’ organizations or projects that address racial, economic and social injustice. Grants are awarded in amounts from $3000 to $20,000. Women
Business Owners' Idea Cafe Small Business Grant Provides grants to African-American women entrepreneurs.  Businesses are awarded $1,000.00 Women
Chicago Foundation for Women We offer grants that range from $15,000 to $150,000 and support organizations within the Chicago metropolitan area (Cook, DuPage, Lake, Kane, McHenry, and Will counties). Activities can be local, regional, or, in some instances, statewide. We fund organizations and programs in economic security, freedom from violence, and health. Women
Chicago Small Business Improvement Fund (SBIF) Grant

The City of Chicago's Small Business Improvement Fund (SBIF) provides grants to help small businesses make improvements to their properties in select Chicago neighborhoods.

 Any
Department of Agriculture Conservation Innovation Grants Conservation Innovation Grants (CIG) is a voluntary program intended to stimulate the development and adoption of innovative conservation approaches and technologies while leveraging Federal investment in environmental enhancement and protection, in conjunction with agricultural production. Under CIG, Environmental Quality Incentives Program funds are used to award competitive grants to non-Federal governmental or nongovernmental organizations, Tribes, or individuals. non-governmental organizations; tribes; individuals
Department of Agriculture Rural Energy for America Program Provides guaranteed loan financing and grant funding to agricultural producers and rural small businesses to purchase or install renewable energy systems or make energy efficiency improvements. Agriculture
Department of Agriculture Rural Business Development Grant RBDG is a competitive grant designed to support targeted technical assistance, training and other activities leading to the development or expansion of small and emerging private businesses in rural areas that have fewer than 50 employees and less than $1 million in gross revenues. Programmatic activities are separated into enterprise or opportunity type grant activities. Nonprofit

Federally-recognized tribes
Ellen Fisher The EILEEN FISHER supports innovative, women-owned companies that are beyond the start-up phase and ready to expand their business and their potential for positive social and environmental impact. Awards $100,000 in grants for up to 10 grant recipients ($10,000 each). Women
Fedex Small Business Grant Contest Every year, small business owners from all over the U.S. compete for the chance to win grants for their small businesses. Grants are awarded in the amount of $5,000 to $25,000. Any
Grants.gov

This is the federal government's site that you can use to find grant opportunities available from federal agencies.

 Any
Halstead Grant for Silver & Jewelry

This is a grant competition for artisans in the industry.  Winners will receive $6,000 in cash and merchandise.  Applications may be submitted between April 15 and June 9.

 Jewelry
Health Resources and Services Administration (HRSA) Grants

The HRSA provides grants to organizations that specialize in providing training to the medical industry.

 Medical
Idea Cafe

Idea Cafe offers a $1,000 small business grant to is given to any small business with the most innovative idea. 

Any
MercyCorps Northwest

Once you have established your IDA savings account and have saved $1,334, Mercy Corps Northwest will match this with $4,000. You then have the total of $5,334 to expand your small business.  You choose the savings period: 6 to 24 months. You must first take a training class which cost $150.00.

 Any
Montana Indian Equity Fund The Montana Indian Equity Fund is a grant to assist a current Native American business or a new Native American business owner. The funds are available only to enrolled members of Montana’s federally recognized tribes in Montana and to enrolled members of the Little Shell Chippewa Tribe. Native American
SBA

This SBA's website lets you complete a short survey then show you what grants, Loans and Seed & Venture Capital sources are available to you.

 Any
The National Institute of Health Grant Programs NIH’s SBIR and STTR programs will invest in early-stage, health and life science companies that are creating a wide range of innovative technologies that align with NIH’s mission to improve health and save lives. Any
The Rockefeller Brothers Fund To be eligible for a grant, organizations should be tax-exempt or seeking support for a project that would qualify as educational or charitable. The Fund’s grantmaking is organized around three thematic programs: Democratic Practice, Peacebuilding, and Sustainable Development, and three place-based programs: New York City, Southern China, and Western Balkans. Educational; Charitable
Women Arts Find grants for women entrepreneurs in the arts from different sources. Women
Women's Net Amber Grant

Women's Net provides grants ranging from $500 - $1,000 to women owned small businesses.

 Women
WomenOwned This is a database that lets women and minority entrepreneurs search for grants specifically targeted to them. Women